Dollar little changed in narrow range as Fed, growth data awaited
Currency markets were relatively subdued overnight despite weaker equities and crude oil.
The dollar was little changed, remaining in a narrow range of about 0.6 of a USc that it first entered a week ago, with markets seemingly unwilling to move the currency until the Federal Reserve's rate hike intentions are known tomorrow.
The kiwi dollar traded at 69.21USc at 8am in Wellington from 69.20USc cents late yesterday. The trade-weighted index was at 75.90 from 75.83.
Currency markets were relatively subdued overnight despite weaker equities and crude oil, figures showing a rise in US producer prices (PPI) in February, and a decline in Chinese retail sales for February.
Along with the results of the Fed's two-day meeting tomorrow morning NZ time, traders will be awaiting the results of Dutch elections, any developments on Brexit and New Zealand gross domestic product, expected to show growth slowed in the fourth quarter.
"Stronger than expected US PPI data didn't generate significant market movement, but reinforces inflation is on the rise," Bank of New Zealand senior economist Doug Steel says.
"Positive growth signals and rising inflation simply underscores the case for the Fed to hike rates tomorrow."
Traders don't expect much market reaction to fourth-quarter current account data this morning, expected to show the deficit accounted for 2.7% of GDP, down from 2.9% three months earlier.
US February consumer price index and retail sales figures are due out tonight, while Australian employment data and policy statements from both the Bank of Japan and the Bank of England will also be closely watched this week.
"Tomorrow could prove more turbulent," Mr Steel says.
The kiwi dollar rose to 65.20 euro cents from 64.96 euro cents late yesterday. It was at 91.51Ac cents from 91.54Ac and 4.7859 yuan from 4.7852 yuan. It traded at 79.40 yen from 79.42 yen and rose to 56.94 British pence from 56.72 pence.
(BusinessDesk)
Jonathan Underhill
Wed, 15 Mar 2017
Wed, 15 Mar 2017
© All content copyright NBR. Do not reproduce in any form without permission, even if you have a paid subscription.
Dollar little changed in narrow range as Fed, growth data awaited
65588